Question

Entrepreneurs get their ideas for business startups from various sources. Elaborate on these sources, and analyze which ones are the most reliable indicators for the new business owner with regard to future success.

Answer 1

SOURCES OF STARTUP IDEAS-

1) SURVEYS

The starting point of any new business is the client because their needs and wants justify the service or product that is to be offered. The wants and needs of the customers are, therefore, the sources of business ideas generation and they can be ascertained by carrying out a thorough survey. Survey can be formal or informal, through questionnaires, interviews or observation.

2) MEDIA

Media such as television, newspapers, Internet, radio, and magazines are a great source of ideas, information, and opportunities. One way to become a successful entrepreneur is taking a careful look at the advertisements and commercials in these media. By reading a magazine or newspaper, one can easily come across a business for sale that interests you.

3) HOBBIES AND INTERESTS

Hobby is an activity that you enjoy doing during your free time and is one of the primary sources of business ideas. Most people have founded great successful businesses while pursuing their interests or hobbies.

4) EXPERIENCE AND TALENT

Most of the ideas and opportunities for successful businesses are a result of the experiences in the place of work. As a potential entrepreneur, you can make the most use of your skills and experiences as crucial sources of business ideas generation. They also determine the type of venture that you start as you capitalize on them.

RELIABLE INDICATORS FOR FUTURE SUCCESS OF NEW BUSINESS-

1) RATE OF RETURN OF CUSTOMERS-

If most of the customers to whom goods or services are offered return during the year then we can say that the company has a bright future.

2) NO LOSS

When you’re assessing the financial status of your company it is more important to practice realism. If you can look back on the first year of operations and ascertain that your business has not fallen into debt, then you are already doing better than most new companies.

3) ASSETS GREATER THAN LIABILITIES

If the company is operating in a comfortably solvent position after its first year of operation with the debts much lower than the revenue and assets, then the company is certainly on the right track.

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